Hotel & Motel Management - December 10, 2007 - (Page 8)

8 At Your Risk In memory of Anthony Marshall, we will run some of our favorite past “At Your Risk” columns throughout 2007. This column originally ran in the Dec. 12, 2005, issue. By Anthony Marshall 1939-2006 H&MM December 10, 2007 | HotelMotel.com www.HotelMotel.com/digital_edition ’Tis the season to get MADD about letting drunks drive coming to a stop. The driver, who had three previous drivingunder-the-inﬂuence convictions, was sentenced to 15 years in prison, the maximum penalty allowed at the time. And MADD added another passionate crusader in Birch, who became president of the national organization in July 2005. Hoteliers know that liquor laws vary from state to state, but there are some constants: Serve a minor or serve a visibly intoxicated patron alcohol and allow them access to their vehicle and you will be held ﬁnancially liable for any drunken-driving accidents. Third-party liquor liability statutes are nothing new, so hoteliers have no excuses for ignorance or noncompliance. Those who take alcohol service responsibly can limit their liability exposure for drunkendriving accidents, as reduced incidents can testify. Those who don’t will invite multimilliondollar drunken-driving thirdparty liability suits, which they are likely to lose. I often am asked, “Why is there liability on the part of the hotel for a drunken driver’s accident that causes injuries to others?” Various state legislatures have determined that the server of alcohol is in the best position to monitor that service and, therefore, prevent drunks from driving and killing others. It’s relevant to note that many chronic drunken drivers do not have any accident liability insurance because they lost their coverage through too many DUI convictions. Hotels and restaurants always have liability insurance, and lots of it. The drunk might be broke, but the hotels aren’t, and lawyers know it. “Service of alcohol is a privilege, not a right, granted by the local community to hoteliers,” pointed out Christopher C. Muller, professor of beverage management at Rosen College, University of Central Florida in Orlando. “When you sign the hotel’s alcohol service license documents, you make three promises: First, you will not serve alcohol to minors; second, you will not serve alcohol to known abusers; and third, you will not serve alcohol to customers who are visibly intoxicated. “When you are granted a liquor license, you accept the responsibility to protect the citizens of your community from drunken drivers; and when you don’t, you pay,” Muller continued. And, to provide some historical context, he told me, “These laws aren’t new, but date back to London in the 1600s when ‘dram shops’ began to appear outside the factory gates selling alcohol to workers. If an industrial accident related to alcohol use caused the death of a worker, his widow or family were often left penniless. Today’s ‘dram shop’ laws originated from when these widows or orphans began seeking compensation from those shops.” Muller had a few tips for hoteliers: Promote the sale of alcohol responsibly; Empower employees to be management’s eyes and ears to spot drunks and report them; and Take aggressive action to keep drunks off the highways. Every guest-contact employee should be enlisted to prevent drunken driving. Whether it’s the bellman who spots a drunk at check-in, a housekeeper who sees a drunk weaving aimlessly down a hallway or a valet parking attendant who is besieged by a drunk looking for his car— each and every one should report the incident immediately to his or her supervisor, or to an ofﬁce designated by management. Birch called with a reminder as this column was going to deadline: “I’d like all H&MM readers to know that drunkendriving accidents are preventable and to please be vigilant this holiday season. Don’t serve alcohol to persons less than 21 years of age, and, just as importantly, not to anyone who appears intoxicated.” The best gift hoteliers could give MADD supporters is to expend their best efforts to keep drunken drivers off our roads. One manager clearly demonstrated how to achieve this when an intoxicated guest attempted to drive off: “Should you start your engine,” the manager told him, “I will call 911, tell them you are intoxicated and tell them your license number. Why don’t you do us both a favor and get out of your car NOW.” Birch shared one ﬁnal message: “This holiday season please drive safe, sober and buckle up.” Now that’s the spirit. hmm@questex.com “ Y ou drink; you drive; you lose,” Mothers Against Drunk Driving warns impaired motorists this holiday season. But many people continue to equate the spirit of the holidays with the spirits inside a bottle. Glynn R. Birch, MADD’s president, put a slightly different spin on that warning for hoteliers: “You intoxicate; you let drunks drive; you also lose.” Serve alcohol responsibly, he urged, and you can avoid that dire prediction. Birch has the right to advocate such responsibility: His 21-month-old son, Courtney, was playing with his two older cousins at his grandmother’s house when a drunken driver came barreling down the street at 70 mph. The car struck and killed Courtney, dragging him more than 150 feet before Family Business Matters Outsiders needed on the inside of the board of directors IN THE details Boards of directors Will become a secret weapon Set company policy Protect company’s future By Mike Henning H&MM Columnist B y the best estimates we can ﬁnd, between 12 and 15 percent of privately owned companies have an active board of directors. Some of these boards consist only of insiders active in the business, while others have investment partners and outsiders in addition to owning-family members. We believe a good board of directors with three outsiders serving on it likely will become the “secret weapon” for the company’s president/owner. Why? Because of what the board is responsible for doing. For example, companies have boards to support the president, establish objectives and policies, hold management account- able, protect employee pensions, act in crises to ensure company survival and select the c.e.o., president, other ofﬁcers and committees. Other beneﬁts, as explained to me by past clients, include the experience and expertise they bring to the table, their force of accountability and their fostering of discipline. They also act as a sounding board— a place to ﬁnd open, honest and objective opinions, evaluate key personnel, ask provoking questions and create new approaches to old problems. In the event the owner becomes ill. the board initiates succession planning, mentors the successor, supports the owning family in regards to ﬁnancial and nonﬁnancial matters and serves as a stabilizing force for the family. The active board with outsiders will set long-range goals with accountability and strategy. They will help direct the human resource program and examine key issues such as the budget, buildings and price changes. One client spoke of how he uses his board, which is made up of three insiders and four outsiders. This board now is in its 11th year. The members focus on advising the family and the business on non-day-to-day matters. They seem to provide a spiritual element to the operation as they work in a consensus process to ensure that what is done and decided on is done because it clearly is the “right” thing to do, not just because it is legal and bound by a cold contract. The client’s managers and the president make a formal presentation discussing the last six months and the future six months, along with appropriate strategies. “When I look back,” See Board | page 18 http://www.hotelmotel.com/digital_edition http://www.hotelmotel.com

Table of Contents Feed for the Digital Edition of Hotel & Motel Management - December 10, 2007

Table of Contents News Wildfires test hotels' emergency plans LIIC roundtable: Capital available for hotel projects Departments Perspective Letters to the Editor At Your Risk Family Business Matters Sales Clinic On Finance Satisfaction Trends HotelWorld Update Events Trends & Stats Special Report H&MM's "year in review" tackles the top seven in 2007 Transactions Consumer Insight Travelers rank free breakfast high on must-have items Hot Products IH/M&RS Editors' Choice Award winners Construction Spending up, costs steady in construction Design Window treatments Ad/Editorial Index Marketplace Classifieds Checking Out

Hotel & Motel Management - December 10, 2007

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